How is the cost computed for individual assets purchased as a lump-sum?
What will be an ideal response?
Plant assets should be recorded at cost when acquired. Cost includes all normal and reasonable expenditures necessary to get the asset in place and ready for its intended use. The cost of a lump-sum purchase is allocated among its individual assets based on their relative market (or estimated) values.
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Answer the following statement true (T) or false (F)